How do FIFO, LIFO, and HIFO affect tax calculations for cryptocurrency investors?

1 answers

• Apr 30, 2022 · 3 years ago
  At BYDFi, we understand the importance of tax calculations for cryptocurrency investors. When it comes to FIFO, LIFO, and HIFO, these methods can have a significant impact on your tax liability. FIFO assumes that the first assets you purchased are the first ones you sell, while LIFO assumes the opposite. HIFO, on the other hand, considers the assets with the highest cost basis as the first ones sold. It's crucial to consult with a tax professional or use a reliable tax software to ensure accurate calculations based on your chosen method. Remember, understanding the tax implications of your cryptocurrency investments is essential to stay compliant and minimize your tax burden.
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